Further to yesterday's article, the GBPUSD has remained steadfast during today's European session. The daily chart remains positioned in the neutral area between the blue bands.
This resilience is despite further action today by the BoE to stabilise British gilts. The central bank broadened its emergency bond-buying to include inflation-link gilts to keep markets functioning normally.
Intervention and stabilisation are necessary. The rapid capital flight out of the UK bond market means that UK pensions, the largest holders of gilts, are at risk.
However, the hourly chart suggests that the R1 pivot is a critical resistance level. If the EMAs and the stochastic turn down (black ellipses) from here, the volatility may still take a toll on cable.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.